Thanks stynger007, great info!
I ordered and received a replacement capstan motor. When apart, I powered the original motor a few times and it def had a bearing issue. Making plenty of noise. I removed the pulley, then put a couple drops of synthetic machine oil on the shaft. After a few power ups, she is spinning fine without any noise. I decided to roll the dice and keep the original capstan motor in it for now.
What a difference! Initially the W/F was >0.12, tapping 0.5 when it would momentarily drag. After oiling the motor it is now a very respectable 0.06-0.08, and spinning 3001Hz on a 3000Hz cal tape.
One word of caution on adjusting motor speed. Always use a ceramic or plastic shaft screwdriver, or wrap tape around a metal shaft screwdriver to prevent shorts. Ceramic shaft drivers are extremely cheap, like $5 for a set of 3 or 4. Well worth the cost.
Pretty impressive little deck. I may take the time in the near future to run a frequency response test on it with my Nak T-100, see how good the heads & electronics are. Still not too hopeful on that considering the drop in signal quality when going from an 8kHz to 10kHz cal tape, but, still might be worth graphing it.